Desmond’s Disastrous Decision

DORIS and Desmond had always dreamed of buying a spacious new house for their growing family.

They had just welcomed twins, Doreen and David to their family, consisting of two other children and their lovable puppy, Dozer.

Desmond decided to make an offer on a new property, proposing a purchase price of $950,000 to the agent.

Unfortunately, the vendor rejected the offer due to Desmond’s request for a 120-day cooling-off period, which would enable him to obtain finance or sell their current home.

Determined to secure their dream home, Desmond devised a plan.

He offered the vendor an upfront payment of $20,000, which the vendor could keep if Desmond withdrew from the contract within a 120-day period.

The vendor agreed, sealing the deal.

With the new house seemingly secured, the pressure was on for Desmond to sell their current home.

However, weeks turned into months, and despite lowering the price, potential buyers remained elusive.

Desmond found himself approaching the 120-day deadline, without the necessary funds. Desperate to bridge the financial gap, he sought approval for bridging finance, but his request was met with a disheartening rejection.
Things were seriously unravelling for Desmond.

Realising the magnitude of his mistake, Desmond faced a difficult decision.

He could withdraw from the contract and forfeit the $20,000, or continue with the contract after the 120-day deadline, giving him just the usual 28-day settlement period to come up with the funds.

If he is unable to complete by the settlement date, he could be liable for the whole ten percent deposit, being $95,000 plus potentially additional damages.

In hindsight, Desmond realised that he should have listened to his wife, Doris and sought sound legal advice before entering-into such a significant transaction which could have saved him from this predicament and a seemingly never-ending family dispute.

Thank you to Anthony Fogarty for his assistance with this column.

Email Manny Wood, principal solicitor at TB Law at manny@tblaw.net.au or call him on (02) 66 487 487.

This column is only accurate at today’s date and cannot be relied upon as legal advice.

By Manny Wood, Solicitor